Quarterly report pursuant to Section 13 or 15(d)

Note 7 - East Tennessee Materials and Energy Corporation ("M&EC")

Note 7 - East Tennessee Materials and Energy Corporation ("M&EC")

6 Months Ended

Jun. 30, 2017

Asset Retirement Obligation Disclosure [Text Block]

7.	East Tennessee Materials and Energy Corporation (“M&EC”)

The Company continues its plan to close its M&EC facility by the end of the M&EC’s lease term of

January 21, 2018.

Operations at the M&EC facility are continuing during the remaining term of the lease and the facility continues to transition waste shipments and operational capabilities to our other Treatment Segment facilities, subject to customer requirements and regulatory approvals.

Simultaneously, the Company continues with the required clean-up/maintenance procedures at M&EC’s Oak Ridge, Tennessee facility in accordance with M&EC’s Resource Conservation and Recovery Act (“RCRA”) permit requirements.

June 30, 2017,

total accrued closure liabilities for our M&EC subsidiary totaled approximately

$2,745,000

which are recorded as current liabilities. At

December 31, 2016,

M&EC had long-term closure liabilities of approximately

$881,000

which were reclassified to current at

March 31, 2017.

The following reflects changes to the closure liabilities for the M&EC subsidiary from year end

2016:

Amounts in thousands
Balance as of December 31, 2016		3,058
Accretion expense		94
Payments		(407	)
Balance as of June 30, 2017	$	2,745

Revenues for the M&EC subsidiary were

$1,692,000

and

$5,072,000

for the

three

and

six

months ended

June 30, 2017,

respectively, and

$1,382,000

and

$2,755,000

for the corresponding periods of

2016,

respectively.